India Revamps Insolvency Scheme, Sets up New Board

The Insolvency Professional Agencies meeting the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley, in New Delhi on November 28, 2016.(PIB)

Union Minister of Finance and Corporate Affairs Arun Jaitley has unveiled a new initiative by setting-up the Insolvency and Bankruptcy Board of India (IBBI) that he said was done by the present Government in the shortest possible time.

The Finance and Corporate Affairs Minister was speaking at the function organized by the Insolvency and Bankruptcy Board of India (IBBI) on Monday in order to give away the Certificates of Registration to two Insolvency Professional Agency (IPA) companies.

The Finance Minister further said that there are lot of expectations from this new insolvency mechanism and sure that it will deliver the desired results in years to come.

Earlier, Jaitley handed-over the Certificates of Registration to these two Insolvency Professional Agency (IPA) companies.

An Insolvency Professional Agency is a front line regulator for the insolvency professionals. It enrolls professional members, lays down standards of professional conduct for them and monitors their performance. It also redresses the grievances of consumers against its members.

The Insolvency and Bankruptcy Board of India (IBBI) has granted registration to the following two Section 8 (not-for-profit) companies to act as insolvency professional agencies (IPAs) under the IBBI (Insolvency Professional Agencies) Regulations, 2016:

a. Indian Institute of Insolvency Professionals of ICAI, and

b. ICSI Insolvency Professionals Agency.

With the notification of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, the IPAs can start enrolling the professional members from 29th November, 2016. This takes one step closer to implementation of the Insolvency and Bankruptcy Code, 2016.